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Lower your auto loan payments, and lower your rate in a matter of minutes when you refinance your auto loan with us today! It's just that simple.
GET A FREE QUOTEShould I refinance my car loan? Is it a good time to refinance? Should I trade in my car? Get answers!
After a few years of paying for your car there are always a few inevitable questions that may come to mind:
Refinancing or trading in your car loan could change a lot of things. It is important to ask yourself these questions but remember there are a few other factors to consider before making the final decision.
Simply put, refinancing a car loan is when you get a new loan to replace your old one. Depending on if you get a good refinancing deal it could mean a lower interest rate and a lower monthly payment. It is important to understand the refinancing process before you get started.
Ask your current lender for a payoff statement which will let you know how much you still owe on the existing loan.
Once you complete all the necessary paperwork the new lender will send a check to your old lender to pay off your loan amount, and then you can start making payments on your new auto refinance loan.
The steps to refinancing are quite straight forward but considering the pros and cons before making the decision is an important prerequisite:
Trading in your car is when you switch out your current vehicle for a new one. Sounds exciting, doesn't it? It could be the perfect decision for you depending on your financial situation and what you are looking for in a car.
There are many reasons you may want to trade in your car but before you do that you need to do a little bit of homework first:
As mentioned earlier the moment you leave the dealership your car starts to lose value. To find out your trade-in value, check out Kelly Blue Book or the NADA website.
Think realistically about what you can afford A new car could result in a higher or lower monthly payment, be honest with yourself about whether you need to be saving money or taking on new monthly expenses.
Getting pre-approved for a car loan can help facilitate the trade-in-a-car process since you won't have to wait on the dealership to tell you if you are approved or not.
A new car purchase can be very exciting. You get a chance to get some of the features your old car may not have such as better gas mileage, four-wheel drive, or new technology such as Bluetooth car play.
If you trade in a car for a cheaper option your new loan payment could be lower which is a huge benefit. A new auto loan with a lower monthly payment could be the financial fresh start you need.
Depending on where you shop for a car you can close a trade-in in a day. You can use an online lender like Carvana and CarMax who make the process relatively simple.
Now that you have read some of the pros and cons of each option there is one more factor that may not have crossed your mind: the state of the auto industry. According to AlixPartners, the auto industry lost around $210 billion in revenue in 2021. Due to COVID-19 and the economy, the way people are thinking about cars and auto loans has changed drastically in the past 2 years.
Depending on your situation, RateWorks can help by potentially saving you up to $1,200 per year while also offering one flat rate, regardless of the loan term you choose. After, you should also assess the value of your car to see if trading it in will get you an even lower payment. Then, you can compare the two scenarios and decide which is the right decision for you. If you're ready to see what we can do for you, get your FREE quote and start saving!
Lower your auto loan payments, and lower your rate in a matter of minutes when you refinance your auto loan with us today! It's just that simple.
GET A FREE QUOTE